What the new rights around neonatal leave actually mean

What is neonatal leave?

The new neonatal care leave is intended to support parents of babies who are admitted into neonatal care within 28 days of birth, and who have a continuous stay in hospital of seven full days or longer. Currently, there is no specific leave for parents with babies that require prolonged stays in hospital, so the new legislation will make a big difference to employees in this challenging position.  It is most likely to benefit parents with children born prematurely or who have complications at birth and is designed to ensure employees do not feel pressure to return to work earlier than they want to. 

What do businesses need to keep in mind about the updated rights? 

It’s important to note that Neonatal Care Leave will be a “day-one” right, meaning it’s available to an employee from their first day in a new job. The legislation also states that parents will be able to take up to 12 weeks of leave on top of any other leave they are entitled to, including maternity and paternity leave. 

Will the leave be paid or unpaid?

One of the main questions we imagine both business owners and employees will want to know the answer to is, will this leave be paid or unpaid?  Alongside the new leave entitlement, Statutory Neonatal Care Pay will be available to those employees who have been continuously employed for 26 weeks and meet a minimum earnings threshold.  The exact details, including the rate of pay, are yet to be confirmed. So watch this space for further updates.  The obligation to make payment for the leave will fall on employers, although the government anticipates that claims will be infrequent. Small businesses will be able to reclaim the costs of payment for the leave from the government, whilst larger businesses will be able to reclaim a portion of the costs.

Get prepared with Employment Hero 

Changes in legislation can be daunting for businesses, but being prepared can reduce that. Our experts advise that you make sure to update any applicable leave policies in advance, to cover off the new right when the full details become available. To make things as straightforward as possible, and to save you and your team time, Employment Hero’s leave policy will be updated by our team of experts.  For further advice about your rights and obligations regarding pregnant employees, or those who are new parents, get in touch with our HR Advisory Team.